New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-02-07
MONEY IND BUSINESS

| Letter ones
MONEY AND BUSINESS.
Wall Street would not have been Wall Stree
. II it had not followed the signing of the Inter
state Commerce bill with an advance in price;
and sharp squeeze of those who sell what they
do not own. Because it was obvious that Sc
curities ought to 60 down, and therefore al
the lambs 4" had sold in expectation that they
would 20 down, therefore the first thing done
was to put securities up and collect the fleece
OF tho innoccnts. Stocks closed half dollar
Der share higher than the week before, not
withtanding the depression caused by the panic
in foreign markets. OF the severity of that
depression, it is said that the loss in value OF
securities handled at the London Exchange was
over $2OO,OOO,OOO, and an English statisician
is quoted as saying that this would set back
France, Germany, Austria, Italy and Spain
from two to Ave years One is puzzled to know
how the English stahstcian can tell about that,
but the reverse was evidently severe 1t Is
proof Of the strength Of this market that so
small a decline occurred here when the deprs-
sion abroad was so great Strength, however,
Is OF two kinds. It is no longer denied that
the investing public has disappeared from the
market, and tho powerful spectators who have
taken largo loads OF stocks in order to advance
prices do not want them to keep. but to sell
again. II foreign and American investors show
disposition to sell hereafter the upward ten
dcncy may not last long.
At present, the indications from Europe mako
people think that war is probable, and beliefs
| upon which men act affect markets whether
those beliefs are mistaken or not. But the
"a. 10
r,lmors 1t was the natural reaction after
prolonged and particularly reckless speculation,
which ut Berlin at least had been pronounced
especially rotten by financial authorities. 1t is
the inevitable consequence of such specula-
lion that good securities suffer in the reaction
with wildcats. Men who wisely bought sound
Americans to keep are now selling because
they also "tooll flyer" in things not so sound,
and are forced TO make good heavy losses.
When q selling movement has once begun, 1T Is
as unlikely to lie suddenly arrested rs a great
buying movement, like the one which sen:
SjO,OOO.OOO or more Of American stocks TO
Europe last fall. Only part Of these stocks
will come back, but some have come and moe
may.
The signing Of The Intcrs,a ate Commerce bill
Itself into comforting belief that n wise, patr-
otto and conservative President must, Of course,
choose for commits -ioners men who viii extract
The fangs Of the bill. if it has any fangs, and
so cOnstruc ii as TO get no evil out Of 1t and
all the good there is IN it. Ii would bc n little
safer to calculate that President Cleveland Is
not going to all ront a Dublic feeling which has
led to the passage of this measure, either by his
appointments or through subsequent acts OF
commissioners for whom his party would hold
him responsible. 1t will tc some years before
the courts can get this bill interpreted. Mean
while the enormous litigation which II Will
cause must do some harm, and the confusion
and uncertainty some.
The prospect docs not lack brighter features.
January earnings are looking well. Over 100
railroads, which earned in 1885 more than half
the gross earnings of all roads in the country,
nave now returned for 1856 IN increase OF just
10 per cent. II other returns arc in the same
ratio, the aggregate for the roads which re-
ported S765,OOO,OOC gross earnings in 1885
will lie about SSH 100000 in 1856. and tho
apparent increase in expenses, Judging from
reports thus far, will he about $50, 100000,
leaving SI.,OOO,OOO to he added to interest
has been spcut in binding new lines. The
tonnage returns for 1856 incline one to ask
why more roads arc needed. The actual move
mcnt of the trunk lines east and west bound
was I326@,G7S tons against 13,390,O2G III
1885 about 100000 tons in each OF the
three previous years, 100000 in 1851 and
l3.319.159 in 1850. Ii is true that 100000
bushels more OF grain came to this city by canal
in 1856 than in 1885, but the lack OF Increase
in the total movement for six years does not
snow that an enormous enlargement of Western |
of trunk lines was entirely necessary.
Wheat rose with the war scare last week, and
then declined again, as usual, closing with gain
Of one cent while corn closed half cent lower
than the previous week, butter cent lower
and eggs cents lower. Cotton and sugar were
Steady hut crushed sugar and coffee declined |
An eighth Pork products advanced, lard IL
and dressed hogs % cents per 100 pounds. on |
fell during the week 5-s cents. Iron changed |
Int little, while tin declined tenth of cent
and lead advanced quarter. Money was plcn-
tv and the general expectation OF bankers That
Gold will begin to go abroad this week or next
d;sturbs no one. Tho Treasury paid out $780,
600 gold. 100000 silver, and 100000 legal
,onlcrs more than it took in, and It's receipts
~ silver do not increase ut New-l DIRK the re-
ccuts are roughly cequartcrs gold, one
eighth legal tenders and one-clghth sli'er.
Clcarings continue large throughout the co'h-
fry. and news from growing wheat is sa'lsiac-
torv: the bursting OF the scare III California
,hout drouth caused wheat TO fall . cents III
day.